THERESA May told a Florence audience Britain never felt at home in the EU as she delivered a major Brexit speech in Italy and called for a two-year transition deal.

The Prime Minister told leaders of EU nations they must all work together to make Brexit work “smoothly” as she proposed a two-year transitional deal before a permanent trade deal comes into force.

Mrs May faces a daunting test as she tries to appease both Remainers and Brexiteers inside her own party alongside EU leaders with her vision for a “constructive” solution to Brexit.

The deal could include payments of around £18billion (€20billion) over the next two years.

She told the audience in Florence if the UK and the EU can be "imaginative and creative" about the possibility of a new relationship then both sides are able to “optimistic about the future”.

Boris Johnson told reporters on Friday morning that the Prime Minister has prepared a “great speech” after the Cabinet held a mammoth two-and-a-half hour meeting where they discussed this afternoon’s Florence address.

Refresh this page for live updates of Theresa May's speech in Florence

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Theresa May's has requested a two year "implementation period" for Brexit in her Florence speech i

16.37: Barnier hails May's "constructive" speech

EU chief negotiator Michel Barnier has released a statement following THeresa May's speech, in which he priased the PM's "constructive spirit".

He said Mrs May's statement's on citizen's rights were "a step forward" but must "now be translated into a precise negotiating position".

The Frenchman added that he was willing to discuss further what Mrs May meant by ensuring no EU member state loses out financially.

He added that the sooner an orderly exit was agreed, the sooner talks about the future EU/UK relationship could begin.

16.20: 'She's gone all the way to Florence to tell us what we already know'

Final question from a German newspaper - what does Mrs May hope will be the reaction to her speech in Brussels?

The Prime Minsiter she hopes officials will this as the UK working towards a "deep and special partnership" that would ensure the prosperity of the the remaining 27 EU nations as well as the UK.

"I hope people will respond with friendship - because that is what the UK is offering," she says.

The PM then thanks the audience and leaves the stage to a short round of applause.

15.08: No deal is still better, says May

When asked what she would say to leave voters who will be cross about nothing much changing for up to five years if the UK agrees a transition period, she said people voted to leave the EU - and she has now set out how an implementation period would operate.

During that period, EU people coming to work in the UK would have to register.

Mrs May also agreed no deal was still better than a bad deal. But she says she has set out how both sides can obtain a good deal.

15.05: EU-UK partnership is the prize

Mrs May says a new partnership is the prize, and that she is clear that "Britain’s future is bright."

She added: "We can make a success of this for all our people's.

"We have to get this right and we want to get this done as swiftly as possible.

"The tone I want to set is of partnership and friendship."

15.02 'No deal' scenario looks to be off the table

Mrs May's comments suggest she has no intention of leaving Brexit talks without a deal.

She said a 'no deal' scenario would be "a failure in the eyes of history" and would "damage the future of the continent".

15.00: Britain will continue to pay into the EU budget until 2020

The PM has told the Florence audience that she doesn't want to see the EU lose out during the budget period running up to 2020 from Brexit.

She claims Britain will honour its obligations, which looks likely to mean a settlement of at least £18billion.

Speaking on the Brexit bill and the UK's budget commitments, she said: "Our departure causes another type of uncertainty.

"Some of the claims made on this issue are unhelpful.

"I do not want our partners to fear they need to pay more as a result of our decision to leave

"As we move forwards, we want to work together in ways that promote the economic development of our continent.

"In doing so we want to make a contribution to cover our fair share of the costs involved.

14.54: May discusses period of implementation

Mrs May says "people business and public services should only have to plan for one set of changes in the relationship between the UK and the EU".

The length of the period should be determined by how long the implementation will take - which she believes will be "about two years".

The transitional period should be on "current terms", meaning the "existing structure of EU laws and regulations".

14.48: May on Security

Mrs May is calling for Britain and the EU to continue working together to deal with security issues after Brexit.

"Our security cope is not just vital because our people share the same threats, but because we share a deep historic set of values.

"As the threats we face evolve, I believe it is vital we work together to design new arrangements that go beyond existing arrangements."

Theresa May suggested agreeing a treaty between the UK and EU, underpinned by shared principles.

She added: "We are also proposing a partnership on how we protect Europe together on the threats we face.

"The UK has outstanding capabilities, the biggest defence budget in Europe, we have a far-reaching diplomatic network and world-class intelligence.

"What we are offering is unprecedented

"It is our ambition to work closely with the EU protecting our people, promoting our values and ensuring the security of our continent."

And she added the Uk was "unconditionally committed to ensuring security" across the EU.

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Theresa May's new Brexit slogan

14.50 May urges EU-UK dialogue over court jurisdiction

The PM is calling for both Britain and the EU to understand and interpret the rule of law in the same way as she calls for a new, stronger dispute resolution mechanism.

She said: "It is important any agreement reached are interpreted in the same way by the EU and UK.

"This could not mean the ECJ or UK courts being the arbiter of disputes however.

"It wouldn't be right for one court to have jurisdiction over the other.

"But I'm confident we can solve this."

14.45: May says EEA and Canada-style deal are 'too restrictive' for Britain

The Prime Minister has poured water on rumours that Britain could yet remain in the Europan Economic Area (EEA) by saying that 'off-the-shelf' models are too restrictive for the UK.

She says Britain "can be so much more ambitious than this".

She also declared that there is no need to impose trade tariffs where they currently do not exist.

14.42 May praises EU negotiators despite deadlock

“Thanks to the professionalism of David Davis and Michel Barnier we have made concrete progress on many important issues

“We have recognised there are unique issues with Northern Ireland.

“We will protect progress made in NI in recent years and the lives that depend on the is progress.

“Looking ahead we have stated we will not except any hard border.

“We owe it to the people of NI to see through these commitments.

“We have also made progress on how we look after EU nationals.

“I know that this whole process has been a cause of treaty worry

“But I want to repeat to all EU citizens that we want you to stay, we value you and we thank you for your contribution.

“It remains one of my first goals to ensure you can live your lives as before.

“This guarantee on your rights is real.”

14.39: "It is in our interests for negotiations to succeed"

“That is our choice, It does not mean we are no longer a proud member of the family of EU nations or that we are turning our back on Europe.

“The success of the EU is in our national interest.

“But having made this choice, its whether we can demonstrate that creativity and ambition we need to shape a new partnership

“I believe we must and I believe we can.

“For while the UK's departure is a difficult process, its in all our interests for negations to succeed."

14.34 Terrorism and migration are key reasons behind the need for a future UK-EU partnership

Terrorism, mass migration, the threat of North Korea and climate change are among a host of reasons why Britain and the EU must retain good relations after Brexit.

Mrs May says "we never felt at home" in the European Union and that EU membership is an integral part of the identity of many in Britain.

14.32 Brexit may help the EU, May claims

The Prime Minister has told the Florence audience that Brexit will mean Britain will no longer get in the way of further EU integration, something EU chief Jean-Claude Juncker called for in his State of the Union speech in Brussels.

Despite this, Mrs May asserts that "we are not leaving Europe".

"While the UK's departure from the EU is inevitably a difficult process, it is in all of our interests for our negotiations to succeed.

"So I believe we share a profound sense of responsibility to make this change work smoothly and sensibly, not just for people today but for the next generation who will inherit the world we leave them.

"The eyes of the world are on us but if we can be imaginative and creative about the way we establish this new relationship, if we can proceed on basis of trusting each other, I believe we can be optimistic about the future we can build for the UK and for the EU."

14.28: Theresa May begins her address

The Prime Minister has started her address by using the history of Florence and its place during the Renaissance to call for Europe to be more creative and to look to the future.

She said the Renaissance period " in many ways defined what it meant to be European."

Mrs May claims the Renaissance showed us that, if we open our minds to new possibilities, we can forge a better future for our peoples.

14.25: No EU leaders in the Florence audience

Not one of the leaders of the remaining 27 EU member states is in the audience for today's speech.

14.18: Could Britain leave the EU BEFORE March 2019?

The Telegraph is reporting that the Prime Minister could use this afternoon's speech in Florence to raise the prospect of leaving the EU before March 2019, the current Brexit deadline.

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An armed police officer stands on duty ahead of Mrs May's speech

Anti-Brexit protest ahead of Theresa May's Brexit speech

Fri, September 22, 2017

Live photos as anti-Brexit British expats protesting in Florence ahead of Theresa May’s speech

One of the protesters demonstrating this lunchtime, Rachel Pugh, a 48-year-old from north Wales who has lived in Florence since 1991, is concerned about losing her rights to a pension in the future and had been left uninformed by the UK Government.

She said: ”Who do we ask? The tooth fairy? Father Christmas? The Easter Bunny? Who can we trust? None of them.

"We couldn't vote. We're invisible, in limbo."

14.00: Theresa May's latest Brexit slogan revealed

After 'Brexit means Brexit' and a 'red, white and blue Brexit', the Prime Minister's latest Brexit slogan has been revealed.

The PM will call for a 'shared history, shared challenges, shared future' as she makes her Florence address.

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Theresa May and David Davis arrive in Florence

13.57: The Mayor of Florence welcomes Theresa May

Dario Nardella, the Mayor of Florence, has posted on Facebook to welcome the PM to Florence, saying the choice "confirms the deep ties between the English people and our city".

He writes: "Florence, European city of dialogue and capital of Culture, welcomes British Prime Minister Theresa May, who has chosen the historical heart of Europe for her important speech.

"An event which confirms the strong and deep cultural ties between the British people and our city. Today, once again, we have the opportunity to proudly affirm our determination to build a more and more united, plural and stronger Europe. The Europe of people and cities. A free Europe able to make the dream of those men and women, who bravely saw our future rising from the ashes of World War II, come true. We cannot betray that dream and its ideals."

13.52: The Prime Minister arrives in Florence

Theresa May has just arrived in Florence ahead of her speech.

Arriving alongside Brexit Secretary David Davis, Mrs May looked relaxed as the car, a black Maserati no less, pulled into the venue.

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A protestor holds a placard outside the venue where Mrs May is set to deliver her speech